The British government says that a legal investigation into a London-based charity, Iran Aid, is not connected with attempts to improve Anglo-Iranian relations.

A Foreign Office minister, Derek Fatchett, said in a British television interview that there had been no discussion between British and Iranian officials about Iran Aid which had prompted the investigation.

Supporters of Iran Aid say allegations that its funds are being used for non-charitable purposes are based on false information from the Iranian government and is part of a deal between the authorities in Tehran and London.

Supporters of the charity are occupying its London headquarters to prevent officials removing documents naming its beneficiaries -- which it says includes the dependents of Iranian dissidents.